Analysis of political and legal factors refers to the analysis of the influence of political system, policies, laws and regulations of a country or region on enterprise strategy.

(1) Analysis of political environment factors

1. The political stability of the region and country.

2. the influence of government behavior on enterprises.

3. The attitude and basic policies of the ruling party, as well as its continuity and stability.

4. The influence of various political interest groups on enterprise activities.

political risk means that the government may change its tax policy or plan to increase its share proportion in the enterprise, so as to enhance the influence of the government or satisfy local public opinion.

1. Ownership risk: In 27, Venezuela nationalized 18 offshore petroleum drilling platforms managed by multinational companies.

2. operational risk: local protection policies require local enterprises to participate or hold shares.

3. Transfer risk: the ability to transfer funds or return profits is limited.

Measures for multinational enterprises to avoid political risks:

1. Conduct detailed risk assessment before investing in a certain country.

2. Implement projects with other enterprises to spread risks.

3. Avoid completely trusting a certain country.

4. Seek political support from your own government.

5. Cooperate with local enterprises to improve the acceptability of the project and seek political support.

(II) Analysis of legal environment factors

Law is a means for the government to manage enterprises.

enterprises are regulated economies. One of the means of supervision is laws and regulations. Generally speaking, the local government indirectly influences the activities of enterprises through laws and regulations. There are also some international laws, international economic laws, WTO rules and so on.

Laws and regulations exist for the following four purposes:

1. Protecting enterprises, opposing unfair competition and anti-monopoly laws.

2. consumer protection, which covers many aspects, including consumer protection laws and regulations on commodity packaging, trademarks, food hygiene, advertising and other aspects. Consumer protection law.

3. Protect employees, including laws concerning employee recruitment and health and safety regulations that control working conditions. Labor contract law, labor law.

4. protect the rights and interests of the public from unreasonable corporate behavior. Environmental protection law.

The analysis of legal environment factors mainly includes the following four factors:

1. Legal norms, especially economic laws and regulations.

2. National judicial law enforcement organs.

3. Legal awareness of enterprises.

4. International legal environment and domestic legal environment of the target country.

(3) Characteristics of the influence of political and legal environmental factors on enterprises

1. Unpredictable, it is difficult to predict changes.

2. directness, the increase or decrease of government revenue and subsidies directly affects the cost or income of enterprises.

3. Irreversibility. Once the political and legal environment is irreversible.